Grains in Chicago closed mixed with corn slightly lower and beans marginally higher.
Why cant corn rally?? Index Funds hold 33% of Chicago Wheat open interest. Which is more the the total US soft red winter wheat production. Livestock markets continue to take it on the chin. July Hogs closed down the $3.00 limit. Weather forecast are generally for greenhouse conditions all the way into July 4Th weekend. The corn crop conditions as a nation are 70% Good to Excellent versus 59% last year. Next week is not only final acreage report, it includes quarterly stocks which is the best indication of disappearance of corn into feed rations. Notice the change of how much less corn is headed into the southwest feed market today versus just a few years ago. On a positive note December corn appears to have good support in the 3.90-3.95 area and likely will not breach that prior to next weeks report.
Soybeans a different animal, a market that is in need of rationing yet today as old crop stocks are dwindling and appears that the Delta harvest will not be as early as in years past. This indicating a need for a HUGE premium potentially for early harvested soybeans. That will be the next item of interest. Will it be done by futures, basis, spreads, or all of the above?
Stay Tuned,
Jeff Neisler
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